Another Ponzi, Another Heartbreak: From MMM to CBEX; Major Signs You Are Investing In Ponzi

 

Nearly a decade after the infamous MMM scheme crumbled under the weight of its own deception, Nigerians have once again found themselves at the losing end of yet another fraudulent investment venture—this time, one cloaked in the sophistication of digital technology and artificial intelligence. Known as CBEX, the latest scheme promised the future of wealth through cryptocurrency trading, but like its predecessor, it left behind a trail of empty pockets and broken trust.

Unlike MMM, which openly advertised itself as a mutual financial aid platform with promises of 30% returns in 30 days, CBEX wore the mask of a legitimate digital trading company. With claims of leveraging cutting-edge AI technology to trade crypto and “minimize risk,” the scheme presented itself as a smarter, more refined investment platform for the modern era.

CBEX operators even went as far as setting up physical offices in select Nigerian cities, offering a sense of legitimacy to lure in more victims. Investors were told their funds were only being exposed to one percent of their total capital in any trade, supposedly reducing the risk of major losses. In return, the platform promised to double their deposits within a 40-day cycle.

This seemingly risk-free, high-reward pitch pulled in thousands of hopeful Nigerians who believed they had stumbled upon a financial goldmine. But just like the schemes before it, CBEX eventually folded—vanishing into thin air along with millions in investors’ savings.

In light of this modern-day financial swindle, Peoples Gazette compiled a list of red flags to help the public avoid falling prey to such evolving Ponzi schemes, which are increasingly difficult to spot due to their digital facades and crypto jargon.

A defining characteristic of Ponzi schemes, past and present, is their promise of abnormally high returns without any legitimate business model. In both MMM and CBEX, there was no clear product or service generating the profits being paid out. Instead, returns were simply being redistributed from new investments—a house of cards destined to fall.

Another hallmark tactic is the use of early participants to spread the word. These initial investors are often well-rewarded and become enthusiastic marketers, sharing glowing testimonials to lure friends, family, and strangers. CBEX took this a step further by flooding social media with sleek promotional content and fake success stories that appeared authentic.

Once the money is in, investors typically lose control. With CBEX, users were locked into a 40-day investment window, unable to withdraw or access their funds. Such delays are often designed to give the operators enough time to attract more deposits before pulling the plug.

Another deceptive promise made by schemes like CBEX is the illusion of zero risk. Potential investors are led to believe that only profits await them, and that loss is simply not part of the equation. This is not only unrealistic—it’s a fantasy no legitimate financial advisor would ever endorse.

Modern Ponzi schemes now disguise themselves under the banner of crypto trading platforms, banking on the general public's limited understanding of blockchain technology. This digital smokescreen, combined with clever use of social media, makes it harder for the average investor to detect fraud.

CBEX also engaged investors through anonymous Telegram and WhatsApp groups, often coordinated by paid agents who shared “successful” transaction screenshots to keep the momentum going. Massive referral bonuses and incentives for social engagement were used to keep users actively recruiting others.

A final and critical red flag is legal invisibility. Like most fraudulent entities, CBEX operated without registration with Nigeria’s Corporate Affairs Commission or any financial regulatory body, making legal recourse virtually impossible. While MMM’s founder, Sergei Mavrodi, was at least a known figure, CBEX’s operators remain faceless—a calculated move to escape accountability.

As financial fraud evolves with technology, so too must public awareness. Nigerians are urged to scrutinize any investment platform offering “too good to be true” returns, particularly those without transparency, legal backing, or verifiable leadership. CBEX is just the latest lesson in a long line of costly reminders: if it sounds too good to be true, it probably is.